OKEKUNLE SUNDAY, IBADAN
In an interview with Vanguard which confirmed to CMM in Abuja, General Manager, Corporate Services of the PPPRA, Mr. Kimchi Apollo, disclosed that as a result of the gradual opening up of economies worldwide, a surge was recorded in the global demand for Premium Motor Spirit, also known as petrol, which caused the price of the commodity to rise.
The Petroleum Products Pricing Regulatory Agency (PPPRA) has explained that the increase in its guiding price of Premium Motor Spirit, also known as petrol, to N143.80 per litre was not as a result of the prices of crude oil alone, but mainly as a result of the increase in the price of petroleum products in the international market.
Petroleum products price in the international market is not the same thing as crude oil price. So when some people are complaining, they are only just looking at crude oil price, which is just one component.
“When it is refined, we are not buying crude oil from them, but the products being purchased and all the things that accompany it.
“We do not just sit down and fix price; it is based on certain parameters.
Also, we did not fix prices, we only gave the guiding prices.
“People are only talking about prices of crude oil; that is not the determining factor alone for PMS price. It is the price of the products in the international market.
He stated that the Federal Government had agreed that subsequently, everything concerning the price of PMS would be based on current market fundamentals and market forces.
According to him, the current guiding price is basically the price of the commodity as it is, and it is normally an average over a period, which was calculated and used in determining what the price is going to be in the subsequent month.
He said, “The current price is reflective of the market fundamentals. This is because of activities picking up worldwide.
There was an increased demand for petroleum products, so the prices went up.